atans1

Posts Tagged ‘alchemy’

Base Metal into Gold: no not Alchemy. It’s all in the Accounting

In Accounting, Corporate governance, Investment banking on 13/12/2009 at 9:58 am

Here’s an explanation of how accounting turned an investment banking loss of £160m into a profit of £3.65bn. And so made “hundreds, and possibly even thousands, of staff at the state supported Royal Bank of Scotland group (RBS)” eligible “for bonuses totalling about £1.5bn”.

Wow!

The moral of the story: be sceptical, very sceptical of the headline financial numbers. And read the footnotes cynically.

Follow

Get every new post delivered to your Inbox.

Join 209 other followers